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Louisiana Gov. Jeff Landry vetoed a tort reform bill that trucking leaders hailed as a step towards stabilizing the excessive insurance and legal expenses that burden Louisiana’s trucking sector and hinder its economic development.
“We are disappointed by the Governor’s veto,” said Renee Amar. She was referring to the bill’s title at the statehouse. “Despite this setback we remain committed to advocating reforms that reduce insurance costs, promote fair legal practice and support the businesses vital to our state’s economy.”
According to Randy Guillot, president and former chairman of the American Trucking Associations, the legislation requires that a victim of an accident receive only the amount paid by an insurer or Medicare.
Guillot says plaintiff attorneys send clients to pre-selected providers who then inflate medical bills.
Amar said, “We urge you to take action in order to resolve these pressing problems for the benefit of Louisiana citizens and business.”
The passage of HB 423, also known as the Omnibus Tort Reform Bill, was welcomed by truckers in Louisiana, a state that is known for its high insurance rates and billboards promoting attorneys who represent clients injured in truck accidents. The bill, passed by the Louisiana Legislature last year, would have allowed trucking lawyers to introduce evidence that accident victims were not wearing seatbelts. It also included a provision which would limit certain medical expenses from jury awards.
The bill also included a provision to reduce the practice of plaintiff attorneys “judge-shop” and, in the end, was expected to help lower insurance premiums.
Landry, however, said that supporters of the bill were “repeating the talking heads of insurance industry and defense lawyers in the Legislature” at a news conference held on June 19.
LMTA stated that even after the passage of the bill its members continue to “fight an upward battle with the full strength of the trial bar.”
“Every Louisiana citizen paid a hidden ‘tort tax’ of nearly $1,000 last year and more than 45,000 jobs were lost due to abuses of our legal systems.” To add insult to injuries, Louisiana was labeled as a “Judicial Hellhole” one the worst civil justice environments in the U.S. for 14 years straight,” the group said, referring to a list maintained the American Tort Reform Foundation.
Guillot said: “I’m very disappointed – not only by the veto but also that the governor vetoed the bill. This is a direct insult to all businesses in Louisiana, and in particular the trucking industry. It is a biased opinion and contradicts his previous statements. It’s the complete narrative of the plaintiff bar. It’s wrong.”
Guillot said Louisiana Insurance commissioner Tim Temple and other legislators have called for a special legislative session to try to overturn Landry’s veto. Amar is worried that there may not enough votes to hold a special session but isn’t giving up.
She said, “LMTA is preparing to go all out in the next session next year.” “We will bring much better legislation.” We will fight another day.
Amar has also lamented the difficulties faced by truckers in the state.
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She said, “We are in an unsustainable state in Louisiana.” She said, “It feels hostile.” She added that there are only two companies in Louisiana offering insurance quotes to carriers and one for agricultural haulers.
“And the prices are not reasonable,” she said. “Clearly, the insurance companies have left this state due to its inhospitable nature. Trial lawyers, however, never leave and never cease to exist. It’s like we’re at a war.”
Guillot said of Landry: “It’s further proof that an attorney who is a conservative Republican does not always hold the same opinions as a conservative politician.” We’ve met him face-to-face. He refuses to listen to us. He is a plaintiff lawyer, which is completely against business. I think that’s the No. Our litigious society and the state government are the No. 1 problem for economic development in Louisiana.”
David Bauer, ATA Vice President of State and Tax Policy, echoed these sentiments.
“It’s unfortunate that Gov. Landry seems more in agreement with Louisiana’s trial bar than the hardworking small and family businesses in his own state. “With his veto of bipartisan bills that would have continued to build on our progress in Louisiana and other States in our lawsuit abuse campaigns, he has decided ally with those who use the judicial process to target trucking to make big paydays.”
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